1035884--2/28/2008--COMMSCOPE

related topics

{customer, product, revenue}

{cost, operation, labor}

{acquisition, growth, future}

{cost, regulation, environmental}

{tax, income, asset}

{control, financial, internal}

{cost, contract, operation}

{property, intellectual, protect}

{loss, insurance, financial}

{operation, international, foreign}

{loan, real, estate}

{personnel, key, retain}

{product, market, service}

{system, service, information}

We are dependent on a limited number of key customers or distributors for a substantial portion of the net sales in each of our business segments. We face competitive pressures with respect to all of our major products. Successful implementation and roll-out of product innovations is necessary to preserve customer relationships. Orders received from customers may be cancelled or may result in lower levels of orders in future periods. Our dependence on commodities subjects us to price fluctuations and potential availability constraints which could materially adversely affect our profitability. We are dependent on a limited number of key suppliers for certain raw materials. If our products, or components or completed products purchased from our suppliers, experience performance issues, our business will suffer. If our integrated global manufacturing operations suffer production or shipping delays, we may experience difficulty in meeting customer demands. Difficulties may be encountered in the realignment of manufacturing capacity and capabilities among our global manufacturing facilities that could adversely affect our ability to meet customer demands for our products. If we encounter capacity constraints with respect to our internal facilities and/or existing or new contract manufacturers, it could have an adverse impact on our business. If contract manufacturers that we rely on to produce products or key components of products encounter production, quality, financial or other difficulties, we may experience difficulty in meeting customer demands. Our significant international operations present economic, political and other risks. We may fail to realize the anticipated synergies and cost savings expected from our acquisition of Andrew. We may have difficulty integrating the CommScope and Andrew businesses and may incur substantial costs in connection with the integration. We may need to undertake restructuring actions in the future. We may need to recognize impairment charges related to goodwill, amortizable intangible assets, fixed assets or other intangible assets with indefinite lives. We have significant obligations under our defined benefit employee benefit plans. We may not fully realize anticipated benefits from prior or future acquisitions or equity investments. We may incur costs and may not be successful in protecting our intellectual property and in defending claims that we are infringing on the intellectual property of others. A jury has found that Andrew willfully infringed a third party's patent in providing a mobile location system to a customer located in the Middle East, and the jury awarded $45.3 million in damages to that third party. As a result of the acquisition, including the financing necessary to consummate the acquisition, we have substantial indebtedness. Our ability to obtain additional capital on commercially reasonable terms may be limited. CommScope and Andrew both depend on key personnel and the loss of any of these key personnel, including due to uncertainty regarding the acquisition, could hurt our business. Our business depends on effective information management systems. We may have difficulty integrating our systems of internal control over financial reporting with that of Andrew. A significant uninsured loss or a loss in excess of our insurance coverage could materially adversely affect our financial condition. Compliance with domestic and foreign environmental laws and potential environmental liabilities may have a material adverse impact. Allegations of health risks from wireless equipment may negatively affect our results of operations. We may experience significant variability in our quarterly and annual effective tax rate.

Full 10-K form ▸

1035884--2/28/2008--COMMSCOPE_INC